Management Controls for Effective Inter-firm (Buyer-Supplier) Relationships: Bangladesh RMG Industry

Authors

  • Noor Hossain Faculty of Business and Economics, University of Malaya, 50603, Kuala Lumpur, Malaysia
  • Muslim Har Sani Mohamad Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, PO Box 50728, Kuala Lumpur, Malaysia

Keywords:

Management control models, Effective inter-firm (buyer-supplier) relationships, Transaction cost economics, Ready-made garment (RMG) Industry, Bangladesh.

Abstract

A large proportion of inter-firm relationships (IFRs) in the outsourcing industry fail globally to achieve their intended objectives. As such, the right management controls are required in order to support these relationships. There is however, limited empirical research on effective inter-firm (buyer-supplier) relationships (EIFRs) and management controls for specific industries. This study extends the literature by examining EIFRs and their relevant management controls in the ready-made garments (RMG) industry in Bangladesh. The RMG industry in Bangladesh is highly dependent on international buyers as they contribute significantly to the country’s economy. Thus, the purpose of this study is to examine the relevant management control models to support EFIFs in the RMG industry. Accordingly, a cross-sectional survey was conducted with senior managers of RMG suppliers in Dhaka City. The results highlight the importance of market-based and trust-based control models in supporting EIFRs in Bangladesh’s RMG industry.Keywords: Management control models; effective inter-firm (buyer-supplier) relationships; transaction cost economics; ready-made garment (RMG) industry; Bangladesh

Author Biographies

Noor Hossain, Faculty of Business and Economics, University of Malaya, 50603, Kuala Lumpur, Malaysia

PhD in Accounting

Muslim Har Sani Mohamad, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, PO Box 50728, Kuala Lumpur, Malaysia

Associate Professor in Accounting

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Published

2023-11-01

Issue

Vol. 20 (2023): ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE

Section

Articles

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